China Insights

FMCG spending recovery continues in China

Jason Yu

Greater China General Manager

Retail 21.12.2017 / 18:30

Consumer spending on FMCG in China grew by 5.5% for 12 weeks ending November 3, 2017 compared to the same period last year.

Kantar Worldpanel’s latest figures for 12 weeks ending November 3, 2017 shows consumer spending on FMCG in China grew by 5.5% compared to the same period last year. Modern trade (including hypermarkets, supermarkets, and convenience stores) grew by 3.1% which is faster than the 1.9% recorded for the same period last year. Smaller store formats led the growth, with supermarket and convenience stores up by 3.9% and 4.8% respectively. E-commerce value growth remained strong at 26%.

Among the top retailers Yonghui maintained the fastest growth rate, up by 11%. Sun Art group, driven by RT-mart, also achieved fast growth at 5.7% and further strengthened its leading position. With Alibaba becoming the shareholders of Sun Art group, the retailer looks set to accelerate its growth with empowered digital capabilities and as well as acting as delivery centres for Tmall supermarket.

1221-EN-P11 Retailerr Snapshot

In the past 12 weeks, 30% of the urban Chinese families bought FMCG online, only up by 3.3% compared to last year. As penetration growth slows down, e-commerce giants will to need to focus more on driving the number of trips and basket size in order to maintain growth. Over the past three years, continued to narrow its gap with Tmall in penetration.

1221-EN-Top 3 E -comm 

For more information, please click Grocery Dataviz.


Source: Kantar Worldpanel

Editor's notes

* Key cities: Beijing, Shanghai, Guangzhou, Chengdu; Tier 2 cities: Provincial capitals; Tier 3, 4 cities: prefecture-level and county-level cities as well as counties. International retailers refer to retailers originated outside China’s Mainland, Taiwan, Macau, and Hong Kong.

EAST: Shanghai, Jiangsu, Zhejiang , Anhui, Henan

SOUTH: Guangdong, Fujian, Hubei, Hunan, Jiangxi

WEST: Chongqing, Shaanxi, Sichuan, Guangxi, Guizhou, Yunnan

NORTH: Heilongjiang, Jilin, Liaoning , Beijing, Tianjin, Hebei, Shandong, Shanxi

* To reach the author, or to know more information, data and analysis of China's FMCG market, please contact us.

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